The Victorian State Government has recently abolished stamp duty for commercial and industrial properties, replacing it with a Property Tax.
From 1st July 2024, commercial and industrial properties will transition to the new system as they are sold, with the new annual property tax to be payable for 10 years after transition date. This arrangement will not apply to current owners, or any commercial or industrial property purchased before the middle of 2024, when the new system commences.
The Annual Property Tax, which will replace the Stamp Duty, is set at a flat rate of 1 percent of the property’s unimproved land value.
In addition, the state government will also reduce the tax-free threshold for land tax from $300,000 to $50,000 from 1st January 2024. Owners who pay land tax will also incur a temporary fixed-rate charge commencing at $500 for properties up to $100,000 in value, and $975 for owners whose property are valued up to $300,000.
Contact Paul today to discuss your financial position or any future commercial property finance requirements you may be considering to ensure you are positioned to take advantage of these changes.
Tags: commercial property, property tax